Calculate the total revenue obtainable when the market clear, Managerial Accounting

Assignment Help:

Question:

(a) (I) The following equations relate to the market conditions for pullovers at a given point of time:

Demand Function: Qd = 1200 - P
Supply Function: Qs = 600 + 4P

Calculate:

(i) the total revenue obtainable when the market clears
(ii) consumer surplus at the market-clearing price
(iii) the ratio of tax payable between consumers and producers if the government introduces a tax of Rs 20 on pullovers.

(II) With more information, the following extended demand function for pullovers was generated (where Y is income and Pg is the price of a related product:

Qd = 1800 - 1.5P + 0.02Y - 0.4Pg
If the initial conditions provided are such that P = Rs 400, Y = Rs 20,000 and Pg = Rs 200, calculate the price, income and cross elasticities of demand and comment on the nature of the product and its relationship with the related good.

(b) Using the theory of demand, explain how you would model the demand for health care services in your locality. You are also required to explain the expected signs on variables that you have included in your modeling.


Related Discussions:- Calculate the total revenue obtainable when the market clear

Ordering costs-relevant costs of eoq model, Ordering Costs These are in...

Ordering Costs These are incurred in getting purchased items into the company’s inventory or stores, and usually consist of clerical costs of: •    Making the purchase demand.

Functions of the treasury department, The significant functions of a treasu...

The significant functions of a treasury department are as given below: a) Setting up corporate financial goals Financial strategies and aim Treasury and financial po

Managerial accounting, I need help with a solution in the Cornerstones of F...

I need help with a solution in the Cornerstones of Financial and Managerial Accounting textbook, Chapter 11, problem 11-51B on page 578. I need to create a statement of cash flows

Explain sales budget, Explain Sales budget A sales budget is an estimat...

Explain Sales budget A sales budget is an estimate of expected sale during a budget period. A sales budget is known as a nerve center or backbone of the enterprise. The degree

Illustrate the important steps of budgetary control, Important steps of bud...

Important steps of budgetary control There are certain steps which are essential for the successful implementation of a budgetary control system. They are as follows: 1) Or

Working capital, State Factors determining Working Capital requirement.

State Factors determining Working Capital requirement.

Objectives of receivables management, After going through this section, you...

After going through this section, you must be capable to: Know the need for establishing sound credit policy; Identify the different credit policy variables; Know the cred

Breakeven point, A company manufactures a one product. Estimated cost data ...

A company manufactures a one product. Estimated cost data regarding this product and other information for the product and the company are as follows: Sales price per unit Rs.2000

Duffy tol and stamping, What are the objectives of excellence teams and min...

What are the objectives of excellence teams and minicompanies? Did the companies achieve these objectives?estion #Minimum 100 words accepted#

Planning-role of management accountant , Planning Planning is the funda...

Planning Planning is the fundamental function of the management by means of which the managers decide: What goals are to be accomplished How they will be accomplished.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd